RDR could harm savings ratio - AIFA

The Office of National Statistics results show the ratio has slipped from 3.9% in the previous quarter and 6.3% in the same period in 2006, despite an interest rate rise of just 1% since January 2006. AIFA director general Chris Cummings says the low figure is a key challenge for Government. “Currently, the intermediary industry not only promotes savings, but facilitates savings with independent advice, which has the potential to exceptionally improve individual wealth,” he says. “An important question for the FSA is: will their Retail Distribution Review help or hinder the savings ...